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Mortgage Foreclosure

Posted on: 10th Mar, 2010 07:21 am
I just received a nasty letter in the mail from Bank of America (the servicer on a Freddie Mac mortgage), because for a few days (while it took the bank time to process the payment) we were just over 120 + days past due. Today we are 99 days past due, but we can make a payment to bring us to only 68 days past due.

We live in Washington state, any idea if they will still proceed with a foreclosure?

:cry:
I guess the question is, CAN B of A foreclose on us even if I make a payment today which brings us only 68 days past due?

We sent B of A the home modification application forms two weeks ago - does this process give them impetus/permission to carry on with a foreclosure?
Posted on: 10th Mar, 2010 07:28 am
Hi Tricia,

Lenders do not want to foreclose on the property unless they are forced to do so. As long as you stay current on the loan, the lender will not foreclose the property. Talk to the lender and tell them you can make payments to get current on the loan. Chances are that the lender would provide you with a time-frame and will ask you to make the outstanding payments to get current on the loan. The sooner you catch up with the payments the better it is for you.
Posted on: 10th Mar, 2010 10:00 pm
Assuming one has been in constant contact with B of A, and is now current (again) with the repayment plan, because they have sent us a Notice of Intent, does that enable them to start the foreclosure proceedings in any case?

In any case meaning:

We are not "current" on our mortgage, but we are current (again!) on our repayment plan.

We are now only 69 days in arrears.

The Notice of Intent stated they can start foreclosure if payment in full (meaning the remaining balance on our payment plan due by the end of June) is not received by April 2nd 2010.

I have spoken with the bank many times, but the clerk I've spoken with is not concerned about the letter, and informed me it is just procedure. Well foreclosure is also "JUST PROCEDURE". I've read many stories (including in the New York Times) about people on repayment plans, and those who have actually been part of the "Making Homes Affordable" plans who have made their payments on time and as the agreements stipulated, and who have been foreclosed upon (B of A, and Wells Fargo included here!!). So perhaps one can understand why I do not feel assured when even three different B of A clerks tell me, I won't be foreclosed upon. B of A is only the servicer, and they have much less to lose in a foreclosure than the owner of the mortgage.

So my question is, exactly what does this Letter of Intent enable B of A to do? Can they still foreclose despite, the fact I'm now up to date on the repayment plan and only 69 days in arrears?

Thanks in advance...
Posted on: 11th Mar, 2010 01:28 pm
hi tricia,

you are up to date with the repayment plan, but you are still 69 days behind on your mortgage payments. the lender can foreclose on the property until you get current on your mortgage. it depends on boa if they would allow you more time to get current on the mortgage or foreclose your home immediately. if you have already been sent a letter of intent, you may get in touch with the loss mitigation department and check out if they really intend to foreclose your property and if there's any option for you to avoid it.
Posted on: 12th Mar, 2010 01:46 am
Thanks for your answer, it is helpful. Disappointing, but helpful.
Posted on: 12th Mar, 2010 04:09 pm
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